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PARKD SIGNS Exclusivity Agreement with Fielders (a division of BlueScope Steel Limited)
PARKD Ltd (“PARKD” or the “Company”) (ASX: PKD) is pleased to announce it is has entered an exclusivity agreement with Fielders Steel Roofing (Fielders) (a division of BlueScope Steel Limited (ASX: BSL)) (Exclusivity Agreement) in respect of the proposed licencing of PARKD’s Metal Deck Support System IP.
- Exclusivity Agreement provides for a 120-day exclusivity period to finalise due diligence and a binding licencing agreement
- Exclusivity Agreement contains non-binding commercial licencing terms
- PARKD and Fielders have identified several opportunities to combine their individual Intellectual Property to develop a structural system that will greatly simplify construction methodology.
- The System will achieve improved structural performance, construction efficiency & productivity suitable for multi-level car parks, residential and commercial buildings.
Fielders has a 120 day exclusivity period (for nominal consideration) to complete technical and legal due diligence and for the parties to finalise binding terms of a Licensing Agreement.
The Exclusivity Agreement was agreed following an initial engineering technical assessment period where the companies undertook:
- Research and Development demonstrating the veracity of the IP performance through testing conducted by Curtin University’s School of Civil and Mechanical Engineering Structural Testing Laboratory (Refer Images 1 to 3);
- Manufacturing Supply Chain Assessment to determine unit costs and productivity scaling; and
- Engineering design review and compliance with the Australian National Construction Code.
Other than the 120 day exclusivity period (which is legally binding), the Exclusivity Agreement contemplates non-binding terms and conditions for PARKD to license its IP to Fielders for distribution, sale, market and manufacture under commercial Licensing Terms and Conditions to be agreed. The Exclusivity Agreement contemplates that the binding agreement will include the following considerations:
- License Rights
- Supply Cost
- Regional Territory
Image 3. Live Load performance testing
The MoU signed by the two companies (refer to the Company’s announcement dated 25 November 2022) was entered into after identifying the exciting potential for their respective IP technologies to offer the Australian construction market a system of building that could be “flat packed” and installed on projects without the need for specialised labour or subcontractors.
The Company considers that the signing of the Exclusivity Agreement represents a significant step forward towards a formal licencing agreement for national manufacturing and sale of IP owned by PARKD. The non-binding initial terms set-out percentage-based royalty payments that have the potential to scale the nature of PARKD’s current business and income streams.
There are no conditions precedent to the Exclusivity Agreement, however, investors should note that there is no guarantee that a formal binding agreement will be reached between the parties.
This article includes content from PARKD, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Australia may be nicknamed the "land down under," but it's far from under when it comes to the economy.
Australia has strong economic conditions, which include affordability, a low public debt level and rising income. Impressively, before COVID-19, the nation had not experienced a recession in more than 30 years.
While many countries faced economic challenges as the pandemic caused worldwide shutdowns, the closures only accelerated Australia's move toward digital solutions. With monumental shifts in how business, banking and education are done, there came an increased focus on artificial intelligence (AI), fintech and more.
Here, the Investing News Network shares the top ASX tech stocks by market cap, according to TradingView's stock screener. All numbers and figures for these top ASX technology companies were accurate as of October 22, 2023.
This is an updated version of an article first published by the Investing News Network in 2019.
Don't forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Matthew Flood, hold no direct investment interest in any company mentioned in this article.
Australia is already a particularly well-invested and well-established region for mining operations. Western Australia is particularly impressive, contributing to 63 percent of the country’s total mineral exploration expenditure. Australia is also one of the top five producers of minerals in the world for resources like alumina, lithium, zinc and manganese among others, with significant resources found in Western Australia. Given that mineral demand is on the rise and expected to continue to increase, there is a present and future opportunity for mineral exploration in Australia.SensOre (ASX:S3N) is an Australia-based minerals-targeting company working to meet the need for better mining exploration methods and has the advantage of running its operations out of Western Australia. SensOre aims to combine its proprietary artificial intelligence (AI) and machine learning (ML) enhanced technology with its significant geoscientific experience and big data to become the top minerals-targeting company in the world. CEO Richard Taylor describes this combination as a means of “surgical exploration reducing costs, especially in drilling.”
Today, mining exploration is of critical importance to the establishment of mines and the acquisition of minerals for various products. However, exploration is often a costly and time-consuming business that is highly regulated by the government. The Victoria State Government, located in the Australian capital Melbourne, reported that fewer than 1 percent of all exploration targets become mines. Even worse, typical mineral exploration only involves 20 percent to 40 percent of the available data and is subject to human biases that could potentially negatively affect outcomes.
SensOre applies AI/ML algorithms to what is known as a Data Cube, which is a constantly updating and verified repository of over 60 billion data points, to predict the locations of mineral deposits all while determining the economic viability of deposits and minimizing environmental impact. Furthermore, SensOre uses its technology to explore new targets that share similarities to already established mines. In doing so, SensOre’s Data Cube and Discriminant Predictive Targeting Technology (DPT) were designed to help mineral companies better analyze where and how to explore, therefore allowing mining exploration to be more timely, cost-effective and reduce land disturbance.
SensOre has been working with mining corporations to aid in exploration using its AI and ML-based technologies.
In 2023, Gateway Mining (ASX:GML) executed a farm-in joint venture agreement with SensOre to evaluate and target the lithium exploration potential at Gateway’s flagship Montague Gold project in WA’s Murchison region. SensOre’s DPT technology will generate targets and explore selected tenements within the Montague Gold project for lithium-focused exploration for up to $4.5 million over 4.5 years, earning 80 percent of the lithium rights at the Montague Gold project.
Exploration Ventures AI (EXAI), SensOre’s subsidiary, has an agreement with Venture Minerals (ASX:VMS) to farm into the Golden Grove North project to identify copper (VMS) and lithium potential. EXAI may earn 70 percent in all mineral rights (excluding rare earths) by expending up to $4.5 million in two stages - $1.5 million to earn 51 percent over two years and $3 million for an additional 19 percent.EXAI also completed a farm-in agreement with Firetail Resources (ASX: FTL) which allows EXAI to earn up to 80 percent of lithium rights on E59/E2252 by spending $3.5 million in two stages. Additional considerations of up to $600,000 will be paid by the company upon the delivery of a maiden mineral resource estimate (MRE) and pre-feasibility study (PFS). Under the terms of the agreement, SensOre will provide Firetail access to its proprietary AI technology across the Yalgoo and Dalgaranga Lithium Projects.
SensOre also collaborated with Stelar Metals (ASX:SLB) for the completion of research under their data sharing agreement, developing innovative lithium targeting tools and deploying the newly completed SensOre NSW data cube. The research revealed new areas of high LCT-pegmatite prospectivity along a NNW-SSE trend. The collaboration also aimed to deploy AI/ML applications on surface geochemistry and high-resolution geophysical techniques in support of lithium exploration.
The company has the potential to optimize mining exploration in a significant way through its proprietary technology and the Data Cube. This is only further compounded by Australia’s established mining industry and abundance of batteries and other precious metals.
- SensOre is leveraging proprietary technology, big data analytics and extensive technical expertise to optimize every aspect of mining exploration.
- The company is a mineral-targeting firm operating out of Australia, with a particular emphasis on discovering precious and battery metals.
- SensOre has developed a suite of advanced technologies that aim to streamline mineral exploration through predictive targeting, organizing geoscience data and platforms powered by machine learning technology.
- The company’s Data Cube leverages over 60 billion data points across more than 2,400 layers to predict and determine deposit data layer correlations.
- Discriminant Predictive Targeting Technology (DPT) improves the way mining companies integrate, interrogate and analyze geoscience data, providing them with deep insights into where and how they should explore
Proprietary Technology Suite
A large portion of SensOre’s success can be attributed to its proprietary suite of mining technologies, which include predictive targeting, big data analytics, and machine learning platforms.
- DPT Technology: The company’s DPT technology uses the Data Cube to make predictions for the location, size, grade, and depth of a potential deposit.
- Discoveries Database: An evolving database that leverages public mineral deposit and occurrence data to improve the prospectivity mapping process and DPT platform.
- Data Cube: This streamlined repository of cleaned and leveled geoscience data uses public and proprietary geochemical, geophysical, and geological data obtained by the company. The Data Cube includes more than 2,500 data layers and 24 billion data points.
- AGLADS: The Archean Gold Lode Alteration Detection System (AGLADS) machine learning system identifies alterations in enveloping gold lode systems in the Archean of Western Australia.
- IGROCK: A rock-type classification system capable of identifying igneous rock types using multi-element geochemical assay data.
- iDEPOSIT: A deposit-type classification system that uses multielement, geological, and mineralogical data derived from varying deposit types.
- iFERTILE: A geochemistry-based gold fertility prediction system that uses target data contained in a mineralized intersection to predict the amount of gold a potential target may contain.
- iChromite: An assessment tool providing an increased ability to quickly assess large volumes of geochemical data using automated machine learning technologies to separate fertile and barren samples in the exploration workflow.
Moonera is one of SensOre’s two projects occurring in the Madura region of Western Australia, at the Nullarbor Plain.
- Initial Findings: SensOre’s DPT system confirmed that previous interpretations of the area predicted a concealed target.
Auralia Nickel-Copper-PGE Project
The Auralia Nickel-Copper-PGE project is the second of SensOre’s two projects in the Madura region of Western Australia and comprises three exploration licenses granted to its farm-in partner CGM (WA), a subsidiary of Chalice Mining Limited (ASX:CHN). “The application of SensOre's technology to nickel, copper and lithium is generating some exciting possibilities,'' said CEO Richard Taylor.
- Joint-Venture: The terms of the joint venture allow SensOre to earn 70 percent of the project as long as the company spends $3.5 million over four years, with additional stakes beyond.
- Current Focus: SensOre is currently interested in an 80-kilometer strike length anomaly, approximately 250 to 350 meters below the ground level.
Robert Peck AM - Non-executive Chairman
Robert Peck is a founding principal of peckvonhartel architects with 50 years’ experience in the architectural, development and infrastructure sectors, and the building industry nationally and in SouthEast Asia. Peck is the former president of the Australian Association of Consulting Architects, founding director of Japara Healthcare, former chair of iVvy and director of the RVF Group.
Richard Taylor - Executive Director and CEO
Richard Taylor has held senior executive roles in the resource sector for more than 15 years. Prior to SensOre, Taylor was CEO of ASX-listed Terramin Australia Ltd and held senior roles with Mineral Deposits Limited, PanAust, MMG and Oxiana Ltd specializing in business development, strategy and governance. He is a qualified lawyer. He holds an MBA from the University of Cambridge and a Master's degree in Law from ANU.
Robert Rowe - Executive Director and COO
Robbie Rowe has more than 30 years of experience in gold and copper exploration from greenfield to mining environment. He was the former chief geologist and VP of exploration Australia Africa Asia Pacific region with Barrick Gold Corporation. He is an UNCOVER executive and from 2014 to 2019 was an independent consultant to the mining industry, government and academia. Rowe is responsible for the acquisition of new data sources and for managing the execution of field exploration programs for technology validation.
Adrian Manger - Non-executive Director
Adrian Manger is a senior business executive with 30 years of minerals industry experience, including 20 years in executive roles with BHP. Manger has founded and successfully commercialized private Australian, Chilean and Peruvian mineral exploration companies, including investment financing and joint ventures with majors. He was a founding board member of the Australia Colombia Business Council and is the chairman of the recently Canadian Securities Exchange listed Pampa Metals.
ChemX Materials (ASX:CMX) (ChemX or the Company), an Australian based high-purity critical materials is pleased to advise that the Company has received an R&D tax incentive rebate payment of $909,600 for the 2022/2023 financial year.
ChemX is progressing its critical materials projects across High Purity Manganese (HPM) and High Purity Alumina (HPA). The rebate reflects the expenditure the Company incurred on eligible R&D activities for the previous financial year.
The R&D Tax incentive rebate administered by AusIndustry and the Australian Tax Office is a valuable program for companies like ChemX which are investing in Research and Development to sustainably produce the critical materials of the future.
R&D rebate funds will be applied towards the continuation of strategic investment in HPA and HPM programs, which are increasingly becoming critical materials for the global energy transition.
This article includes content from ChemX Materials, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ChemX Materials (ASX:CMX) (ChemX or the Company), an Australian based high purity critical materials developer, is pleased to announce recent results from its High Purity Alumina (HPA) Micro Plant operations, located in Perth, Western Australia.
- ChemX’s High Purity Alumina (HPA) Micro Plant delivers highest quality result of 39ppm impurities (4N, 99.99% HPA) across 66 elements
- Subsequent batches cementing above 4N (99.99%) purity capability
- High 4N capability enabling synthetic sapphire opportunities
- ChemX refocusing Micro Plant team on Construction and Commissioning of HPA Pilot Plant which is on track for first commissioning in Q1 CY2024
Additional results include 66ppm, 61ppm and 99ppm. Full assay results (Appendix A) and Table 1 in compliance with JORC Code 2012 are appended.
These results reflect the continuous improvement to selectively remove key impurities and provide ever improving product quality. Recent investment in high precision analytical equipment will further aid ChemX to develop new methods to improve product purity and minimise reliance on external laboratories. This will dramatically reduce assay turnaround times and will support the commissioning of the full-scale pilot plant in 2024.
The Micro Plant has achieved its purpose. ChemX will now refocus the team on construction and commissioning of the HPA Pilot Plant. The intended purpose for the larger scale Pilot Plant will be to match or improve the HPA purity results achieved by the Micro Plant.
Chief Executive Officer, Peter Lee commented:
“ChemX has now achieved a HPA level of purity that is beyond 4N (99.99%) and have notably recorded a single result that has outperformed our previous best (reduction of impurities) by over 50%, across 66 elements.
These significant results demonstrate the unique capability of the HiPurA® process and the rigour that ChemX has undertaken to scale up from Laboratory to Micro Plant scale. Following construction, commissioning and optimisation of the HPA Pilot Plant, the stage will be firmly set for HPA customer qualification.”
Analytical methods Notes:
1) Analysis conducted by LabWest Minerals Analysis Pty Ltd. (NATA accredited Laboratory)
2) Analysis Method – Microwave Digest, HF/Multiacid, 66 Elements including REE’s by ICP-MS/OES.
3) Complete analysis provided in Appendix A
Figure 1 – Optimisation of a small module of the HiPurA® Micro Plant
About the HiPurA® 100% owned process
CMX’s HiPurA® process is a disruptive flowsheet which converts aluminous chemical feedstocks through selective refining to HPA. Ultimately, CMX aims to achieve the delivery of 4N high grade and potentially 5N (99.999%) HPA products for the electric vehicle battery separator and synthetic sapphire markets, LEDs, semi-conductor and optical lenses.
The HiPurA® process is modular, scalable and independent of direct mine production, which enables ChemX to locate key future production facilities around the world close to customers in a just-in-time customised approach.
This article includes content from ChemX Materials, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Farm-in Agreement Completed on Southern Yalgoo Tenement
Australian battery minerals explorer, Firetail Resources Limited (FTL, Firetail or the Company) (ASX: FTL) is pleased to announce a farm-in agreement completed with SensOre (Sensore) (ASX:S3N), through its joint-venture subisidiary Exploration Ventures AI Pty (EXAI) in partnership with german resource investment group Deutsche Rohstoff AG, on tenement E59/E2252, a part of the Firetail Yalgoo Lithium Project ("Yalgoo") in Western Australia.
- EXAI to earn up to 80% of Lithium Rights on E59/E2252 by spending $3.5m in two stages.
- Additional considerations of up to $600,000 on delivery of maiden Mineral Resource Estimate (“MRE”) and Pre-feasibility Study (“PFS”).
- Under the terms of agreement, SensOre will provide Firetail access to its proprietary AI technology across the Yalgoo and Dalgaranga Lithium Projects.
- SensOre has identified Lithium-Caesium-Tantalum ("LCT") mineralisation with the use of its proprietary technology.
- SensOre and Firetail to work closely together to identify and confirm Lithium exploration targets in the region.
- Firetail has commenced diamond drilling (“DD”) at its Picha Copper Project in Peru with ten drill holes for ~5,000m.
Firetail Executive Chairman, Brett Grosvenor, commented:
"The approach and subsequent deal with SensOre, validates our understanding of the region and the the potential for a Lithium discovery in this region. The agreement with SensOre enables the FTL team to continue to concentrate efforts on the current targets identified, whilst simultaneously unlocking the potential of the other tenements in the region.
“Firetail has its initial drill program underway at the Picha Copper Project in Peru, and we are delighted to be able to progress our exploration activities across our portfolio in collaboration with SensOre.
“This is a great outcome for FTL shareholders and we look forward to working with the SensOre team in the coming months.”
SensOre Executive Director and CEO, Richard Taylor, commented:
“We are delighted to have the opportunity to collaborate with Firetail in this LCT-prospective region, where the FTL team has made great progress with their exploration so far. We are excited to see the value that SensOre will be able to bring with our proprietary AI technology in exploring the wider Yalgoo and Dalgaranga Project area.”
Yalgoo-Dalgaranga Lithium Project
The Yalgoo and Dalgaranga Lithium Project comprises 14 granted concessions covering an area of over 1750km2, and is located near Geraldton Port in the growing mid-west mining region of Western Australia. Yalgoo is close to all infrastructure, including an existing mine camp powered by renewable energy.
Firetail has completed significant exploration across the project since listing in April 2022, using a systematic strategy of surface mapping and geochemical sampling to identify targets. Firetail identified a 25km “Goldilocks Zone” confirmed to host LCT pegmatites1, and completed its maiden reverse- circulation (“RC”) drilling campaign in an area of just 1km by 2km within the zone2. Drilling confirmed high-grade rubidium in the area3, including 10m @ 0.44% Rb from 10m, warranting further investigation as one of the highest value critical minerals with potential applications for decarbonisation.
Further detailed mapping and rock chip sampling by Firetail at the Johnson Well prospect, 8km south- east of Yalgoo confirmed the continuation of fertile pegmatites along strike to northwest of Johnson Well lepidolite mine4. Significant rock chip assay results include:
- 0.54% Li2O, >1% Rb, 707ppm Cs and 304ppm Ta
- 0.37% Li2O, >1% Rb, 800ppm Cs and 166ppm Ta
- 0.17% Li2O, 6410ppm Rb, 435ppm Cs and 82 ppm Ta
The Company subsequently undertook a program of RC drilling5 comprising 22 holes for 589m at the Johnson Well Prospect. Pegmatites were intersected in 3 of the 4 drill sections over a strike length of around 150m and appear continuous for ~120m down-dip.
Encouraging assay results were received including:
- 3m @ 0.83% Li2O from 32m
including 1m @ 1.16% Li2O from 34m (JWRC-0005)
Lithium minerals observed in the pegmatites were predominantly lepidolite and zinnwaldite, associated with potassium feldspar, albite, muscovite and biotite. The Company was pleased to note the apparent increase in lithium grade at depth where the deepest pegmatite intersection returned the best lithium assay result (drill hole JWRC-0005).
This article includes content from SensOre, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Geopolitical tensions are rising in several regions of the world and governments are expected to increase their defense spending in the years ahead.
The entrenched Russian-Ukraine war, the eruption of the Israel-Hamas war, military posturing in the ongoing US-China trade conflict and the spread of cyber security attacks on critical infrastructure — all of these developments and more are driving demand in the global defense market.
Global defense spending is projected to reach US$2 trillion by 2026, led by the United States, China, India and Russia. For the most part, the aerospace and defense industry provides equipment, technologies and services to national governments through contracts. The players in this space are typically defense contractors that design and manufacture aircraft, satellites, electronic systems, software, missiles, drones, autonomous vehicles, tanks and marine vessels.
Increasingly, cybersecurity products and services are gaining prominence in the defense industry. The cybersecurity subsector of this market is forecasted to grow from US$13.97 billion in 2022 to US$48.78 billion by 2032.
Here, the Investing News Network takes a look at the biggest defense stocks by market cap traded on the NASDAQ, NYSE, TSX and ASX. Market cap and share price data per TradingView's Stock Screener was accurate as of October 25, 2023.
US Defense Stocks
The US defense industry has experienced steady growth since 1965. Today, the US accounts for the largest share of global defense spending, representing about 40 percent of worldwide military outlays, reports Statista. In fact, after social security, military spending is the second-largest allocation in the US federal budget, according to Mordor Intelligence. Worsening geopolitical tensions are expected to increase the US government's spending on defense technology.
Market cap: US$118.25 billion; share price: US$178.09
Engineering and technology company Honeywell International develops and manufactures technological solutions for a variety of sectors. The company’s four business divisions are: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. Revenues for the company came in at more than US$35 billion in 2022, up 3.12 percent from the previous year.
Honeywell has numerous defense contracts with government agencies around the world, including right at home with the US Department of Defense (DoD) and US Armed Forces. This includes contracts to provide military-grade technologies and services through the government's Advanced Technology Support Program IV based on the requirements of the DoD.
Market cap: US$114.13 billion; share price: US$78.41
One of the most well known defense contractors, RTX Corporation (formerly Raytheon), is a leader in defense, aviation, space, electronics and cybersecurity. The company captured more than US$67 billion in revenue for 2022, up 1.61 percent from the previous year.
Most recently, the US Naval Sea Systems Command awarded RTX a US$74.8 million contract to provide engineering and technical support for its Standard Missile 2 and Standard Missile 6 products. "The increasing geopolitical tensions worldwide have prompted nations to strengthen their defense systems manifold," according to Zacks Equity Research. "With rapid technological upgrades, missile defense has steadily become pivotal in a nation’s defense strategy."
Market cap: US$111.08 billion; share price: US$78.02
Lockheed Martin’s business is concentrated on aerospace products and advanced defense technology systems. The F-15 Fighting Falcon fighter jet is among its most notable products, but Lockheed is also well known for its space launchers, ballistic missiles and satellites. The company's 2022 revenues declined by 1.58 percent from the previous year to just under US$66 billion.
Unsurprisingly, about half of Lockheed Martin’s annual sales are made to the US DoD. In April of this year, the company said it expected to strike a deal with the Pentagon for a US$7.8 billion performance-based logistics contract for its F-35 fighter jets before the end of 2023. Under that form of contract, Lockheed would be paid based on outcome instead of quantity. However, as of September, the deal is on shaky grounds, and won't take place until 2024 if it does at all.
Market cap: US$107.27 billion; share price: US$117.84
Another heavy weight in the aerospace and defense industry, Boeing designs and manufactures airplanes, rotorcraft, rockets, satellites, telecommunications equipment and missiles. Revenues for the company jumped by 6.94 percent in 2022 over the previous year to come in at US$66.6 billion.
In April 2023, Boeing brought its Protected Wideband Satellite design to market, which features the company’s Protected Tactical SATCOM Prototype payload hosted aboard the US Space Force's Wideband Global SATCOM-11 spacecraft. The technology boasts automated anti-jam capabilities to enhance battlefield communications.
Market cap: US$72.29 billion; share price: US$483.27
Northrop Grumman runs the full gambit of military technology, including segments focused on aviation, missile systems and navigation as well as highly advanced research, development and production of autonomous systems, cyber technology, laser technology and space development. The company played a key role in the development of the James Webb Space Telescope.
Between its aerospace systems, innovation systems, mission systems and technology service segments, Northrop Grumman posted an annual revenue of US$36.6 billion in 2022, up 2.62 percent compared to 2021.
Canadian Defense Stocks
Canada’s defense industry is dominated by the aerospace sector, with export activities the main drivers of revenue in this sector. This sector has historically outperformed the broader manufacturing sector in terms of industrial growth, according to a Government of Canada report. Exports also represent a significant portion of revenues for land and marine military goods and services. Canada’s largest defense export markets include Israel, the UK, Germany, France and Australia.
GlobalData reports that naval vessels and surface combatants, military fixed-wing aircrafts and military satellites are currently the most attractive segments of the country’s defense market.
Market cap: C$9.26 billion; share price: C$28.53
Established in 1947, CAE manufactures simulation technologies, modeling technologies and digitally immersive training services for the healthcare, aerospace and defense industries. The company’s defense and security business unit provides training and mission support solutions for air, land, maritime, space and cybersecurity operations.
The company has regional defense and security training facilities in the US, Canada, United Kingdom and Europe, Indo-Pacific and the Middle East. CAE's annual revenue for the 12 months ending June 30, 2023 was C$3.23 billion, up 15.16 percent year-over-year.
Market cap: C$4.1 billion; share price: C$40.88
A global leader in aviation, Bombardier is headquartered in Québec and operates aerostructure, assembly and completion facilities in Canada, the US and Mexico. Although best known for its business jets, the company has also earned the distinction of being a trusted designer and manufacturer of military special-mission aircraft under its Bombardier Defense unit.
Bombardier Defense has a multi-year US$465 million contract with the US Air Force under the Battlefield Airborne Communications Node program. As of October 2023, the company has delivered seven Global 6000 aircrafts to the US Air Force. These aircrafts are specialized communications platforms that help bridge voice and data between forces on the ground and in the air. Under the contract, the Air Force has the option to purchase an additional aircraft each year through 2026. Bombardier reported US$6.9 billion in revenues for 2022, an increase of 14 percent year-over-year.
Market cap: C$1.37 billion; share price: C$11.45
MDA calls itself “an international space mission partner and a robotics, satellite systems and geointelligence pioneer.” The company is responsible for Canada’s first military satellite, Sapphire, which is designed to monitor Earth’s orbit and surveil outer space for man-made space debris and other satellites. Classified as a Space Situational Awareness small-satellite system, Sapphire was created for Canada’s Department of National Defence.
MDA also provides satellite capabilities to the Department of National Defence’s Polar Epsilon satellite ground stations, collecting mission critical data for military commanders. MDA reported strong top-line growth in 2022, with revenues of C$641.2 million, up 34 percent year-over-year. The company expects full year revenues to be between C$785 million and C$810 million in 2023, representing robust year-over-year growth of about 25 percent at the mid-point of guidance.
Market cap: C$520.29 million; share price: C$15.15
Héroux-Devtek is a leading international manufacturer of aerospace products and the world's third-largest landing gear manufacturer. The company is known worldwide for its advanced capabilities in producing complete landing gear systems and components to precise specifications, as well as servicing landing gear systems and components for a wide range of military and civil aircraft.
This has landed Héroux-Devtek strategic partnerships with commercial and military aircraft manufacturers. The company recently reported that its defense sales for the first quarter of its fiscal year 2024 were up 15.1 percent at C$90.5 million “due to the alignment of operations to better deliver while facing the challenges of the current environment as well as the ramp-up of deliveries for the Sikorsky CH-53K.”
Market cap: C$426.76 million; share price: C$7.31
Magellan Aerospace designs, manufacturers and services engine and structure assemblies and components for the aerospace market, including proprietary products for the military and space submarkets.
This year, the company has entered into two important contracts. The first is a long-term agreement extension with RTX subsidiary Collins Aerospace “to manufacture complex magnesium and aluminum castings for various military and commercial aerospace platforms.” This includes castings for F-15, F-16, F-18 and F-35 Lightning II military aircraft. The second is a C$15.8 million contract with Canada’s Department of National Defence to design, build, launch and operate the Redwing microsatellite. According to the release, the microsatellite "represents the next generation of spacecraft technology for space domain awareness technology demonstration."
Australian Defense Stocks
Australia's defense spending contributed AU$10.6 billion to the country's economy for the 2021/2022 period, up 20.2 percent from 2020/2021. Moving forward, the Australian government is committed to investing AU$3.4 billion over 10 years in defense innovation in order to upgrade the nation's defense capabilities.
The country also has a strong defense technologies export market with its international and regional allies, including the United States, Israel, Ukraine, the European Union, the United Arab Emirates and Japan.
Market cap: AU$612.06 million; share price: AU$1.66
Austal is a global shipbuilder, maritime technology provider and defense contractor. The company designs and manufactures frigate-sized, multi-mission surface combatants; high-speed military transport vessels; and patrol boats.
In its FY2023 annual report, the company highlighted contracts for 11 new ships and a total of nine ships delivered in Australia, the US, Philippines and Vietnam. In May, Austal was awarded a US Navy contract valued at up to US$3.2 billion for up to seven T-AGOS surveillance ships, and in September, a US$91.5 million US Navy contract for the construction of three Landing Craft Utility 1700 class crafts.
Market cap: AU$168.14 million; share price: AU$0.26
DroneShield is a provider of AI-based defense solutions, specializing in counter-unmanned aerial systems (C-AUS) for army, navy and air force personnel. Unmanned drones are increasingly being used in military conflicts.
This year, the company has been awarded several significant contracts, such as a AU$9.9 million Five Eyes Department of Defence research and development contract and a record AU$33 million contract from a US government agency for DroneShield equipment and multi-year services. In October 2023, DroneShield announced it had received multiple orders totalling AU$10.4 million from the Australian government as part of a AU$20 million military assistance package to Ukraine.
Market cap: AU$157.54 million; share price: AU$0.94
Electro Optic Systems (EOS) has designed, manufactured and exported high precision weapon systems for nearly 40 years. The company’s product portfolio consists of remote weapon systems, turrets, high energy laser weapons, counter-drone systems, space intelligence and space control products and services, and satellite communication terminals.
In August, EOS announced it had filled an order for three of its Slinger light-weight 30mm cannon systems as part of a US Department of Defense security assistance package to Ukraine. For use on 30mm gun trucks, the Slinger system is designed to track and engage with drones at a range of more than 800 meters.
“The Slingers have been contracted by Northrop Grumman, we received a purchase order for three systems, and there’ll be more to follow after the first three,” stated EOS Defence Systems Executive Vice President Matthew Jones.
Market cap: AU$112.06 million; share price: AU$2.28
Bisalloy Steel Group is Australia's only manufacturer of high-strength steel plating used for armor, structural and wear-resistant steel applications. The company’s Bisalloy Armour military-grade steel is used by defense forces around the world for armored personnel carriers and light armored vehicles, as well as for Bushmaster infantry mobility vehicles in Australia.
In May 2023, the Australian federal government awarded a AU$160 million contract to defense manufacturer Thales Australia to build 78 new Bushmasters for the Australian army. Bisalloy Steel Group recently reported its HY 2023 revenues came in at more than AU$78.42 million, up 42.1 percent for the same period in 2022.
Market cap: AU$49.35 billion; share price: AU$0.47
XTEK operates two business divisions. The ballistics division centers on the company’s HighCom Armor brand, and is focused on designing, manufacturing and supplying militaries, law enforcement and first responders with advanced personal protection ballistic products. These include items such as body armor, ballistic helmets and composite armor structures. The technology division is focused on manufacturing and supplying global defense and security agencies with unmanned ground and aerial vehicle systems, sensors, software and support.
In mid-2023, XTEK’s technology division announced it had reached a major delivery milestone with the near completion of a AU$26.9 million order for small unmanned aerial vehicle systems. In October, ZTEK secured a new multi-year small unmanned aerial vehicle systems contract with the Australian Department of Defence that has a potential value of up to AU$110 million over 10 years if each extension is agreed to.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.